The decline of Bitcoin from $66,500 to $60,000 last week is seen as a “healthy pullback” that reduces the risk of a “sudden drop” in the coming days and weeks, according to Bitfinex.
Experts observed a 10% drop as a sign of “cautious sentiment” among investors. They believe buyers may still seek opportunities to consolidate larger volumes of coins at lower prices.
Analysts noted that since October 1, long positions worth over $450 million have been liquidated, and open interest in derivatives has fallen from $35 billion to $31.8 billion.
“Such a wave of forced position closures indicates that the market is largely oriented towards growth using leverage, as we surpassed the important level of $65,000,” the review states.
Specialists expressed optimism about the future trajectory, citing expectations of a policy easing by the Fed in November. As a “hint” for short-term direction, they suggested waiting for the determination of the US stock market’s dynamic vector.
Crypto ETFs
On October 7, inflows into spot Bitcoin ETFs amounted to $235.2 million, according to SoSoValue. In the previous week, investors withdrew $301.5 million from the products.
Clients added $103.7 million to Fidelity’s FBTC and $97.9 million to BlackRock’s IBIT.
The cumulative inflow since the approval of BTC-ETFs in January has increased to $18.73 billion.
Spot Ethereum ETFs recorded zero dynamics for the second time in history.
The net outflow for the entire period amounts to $553.7 million.
The cumulative outflow from Grayscale Ethereum Trust (ETHE) is estimated at $2.96 billion.
In September, spot exchange-traded funds based on the first cryptocurrency saw a shift from a net sale of 5,000 BTC to the largest purchase since July of 7,000 BTC, according to CryptoQuant.
As reported by Glassnode, Bitcoin product holders demonstrated resilience amid the correction.